Fortune to be had by switching channels

NEW YORK: The United States is poised to produce its first US$16 million-a-year chat show host.

He will emerge from a fight that has all the ingredients of an average American television situation comedy: a large dose of melodrama, a touch of vengeance, some poor performances, a simple plot line and bland dialogue.

At stake is the yearly $100 million profits that can be earned by any of the three networks capable of cornering the two-hour comedy slots that start at 11.30 pm.

That area has been dominated by NBC, but it is being challenged by CBS while ABC waits for the scores.

The story so far: tension mounted last year when the legendary Johnny Carson retired as presenter of Tonight.

Speculation grew that his successor would be his fellow NBC star, David Letterman, the eccentric and acerbic host of Late Night with David Letterman, which occupied the hour following Carson. Instead, the slot went to Jay Leno, the former stand-up comedian.

Leno's ratings fell, and Letterman - who has a penchant for making tongue-in-cheek jokes about the bosses at NBC's parent, General Electric - indicated he could be open to offers.

CBS saw its chance and offered Letterman $16 million to change channels. NBC has until January 15 to match or raise the offer.

To stay in the game, NBC would have to offer Letterman more than five times the $3 million a year it pays Leno. But NBC has lost its two top-rated shows, Cheers and The Cosby Show, and is now third in the ratings. It is estimated to have earned only$50 million last year, after a record $340 million in 1989.

Bill Cosby, America's richest entertainer whose shows helped keep viewers glued to NBC, left the network last year and now says he is interested in buying the network. But Jack Welch, General Electric's boss, is thought to want $3.5 billion.

The Times